ENAM India Diversified Equity Advantage Portfolio (EIDEA)

Fund Snapshot

Fund Overview

EIDEA is a product that channel partners may sell, and it allows customers’ money to be invested in SMAs (separately managed accounts). EIDEA clients profit from having a unique and independent bank account and demat account as well as our skilled channel marketing team’s services. 

EIDEA is a long-only portfolio. The AMC constructs this as a high-conviction concentrated portfolio of approximately 20 stocks. This portfolio is market-cap and style agnostic and is constructed by investing in high-quality businesses at attractive valuations. These businesses are structurally well-positioned with sustainable competitive advantages and superior execution capability, ensuring consistent long-term growth.

Investment Philosophy

Enam India diversified equity advantage AMC is a disciplined and impeccable investment philosophy tested and put under scrutiny over a long period. They have set five pillars of investment philosophy for themselves, which they stick by while seeking value-driven investments. These five pillars are:

Business opportunities: ENAM AMC assesses the size and scale of the options. They focus on businesses with vital performance records and high quality. They only consider structurally well-positioned companies.

Longevity: One of the essential criteria which they consider is long-term growth. They focus on sustainability, and they stand by the business they select. EIDEA determines long-term competitive advantage. They also predict and assess the adaptability and resilience of the opportunities. They evaluate the replicability of the business model of the options they are observing.

Management Quality: They analyse the management team and the working of any business while evaluating the companies.EIDEA attempts to determine the integrity and intellect of the leadership team. They also assess the management teams’ balance between ambition and pragmatism. EIDEA also put under scrutiny the business’s alignment between objectives and goals. In the long run, they also determine their capacity for innovation and adaptation.

 Value Accretion: EIDEA confirms the extent of free cash flow. The team assesses the return on incremental capital. EIDEA practices caution against improper and destructive capital allocation and disproportionate returns on gradual improvement.

Culture of discipline: ENAM India diversified equity advantage has a very disciplined way of functioning, which they stand by. The EIDEA team refrain from ignorance and denial drive averaging. They focus on every stage of the investment process.

WHY ENAM PMS

• A business specializing in portfolio management with just one investing approach
• The only socially responsible portfolio manager in India
• Longest tenured single manager in history
• Long-standing investing team with knowledge of many business cycles
• Authentic performance history disclosure
• The first Indian supplier of portfolio management services with a track record of GIPS compliance
• Efforts made to create a comprehensive ESG framework
• Enam AMC is a member of the Principles for Responsible Investment Initiative, which is supported by The United Nations (PRI)

About the Product

ENAM India diversified equity advantage portfolio is a product for distribution by channel partners provided by ENAM Asset management. In this, the clients’ money and funds are invested on a separately managed account basis. EIDEA clients benefit from the channel marketing team’s knowledge and experience.

The clients also hold an advantage due to having an individual and separate bank and Demat account. EIDEA keeps its prime focus and objective to deliver a strong performance over a long period. The EIDEA brokerage account is at a pool level due to the aggregation of purchases and sales for economies of scale. Trades are executed through the collection post, which is allocated to individual accounts.

EIDEA targets and reviews well-positioned businesses that have long-term growth potential. They only consider high-quality companies. The EIDEA team attempts to acquire the best of them at the most attractive valuation.

They focus on beating the already set benchmarks and peers. EIDEA also manages risk and, at the same time, preserves capital and value with the support of their impeccable risk management measures, which ensure a balanced portfolio. They also seek complete ownership of the opportunities to ensure consistent alpha is delivered to their clients.

Investment Process

Keeping in mind the five pillars. EIDEA follows a particular investment process.

Step 1 Investment Universe: EIDEA conducts a comprehensive screening of the companies, including over 200 companies. They look at companies across various sectors and a capitalization range. EIDEA have an investment process which they follow:

Step 2 Research and Analysis: EIDEA team conducts a deeply competitive, operational, financial, and valuation analysis of companies. They search for companies that fulfill the criteria they have set for investments.

Step 3 Ideation and Investment Decision: EIDEA has an idea generation process that focuses on a series of stocks of over 200+ companies.

Step 4 Monitoring: They create packages of the best portfolios for their clients. EIDEA team also mitigates risk through portfolio construction.

Step 5 Sell: EIDEA team sells the holdings price crosses, which might have gone beyond the estimated value.

Unique Feature

EIDEA is a product that channel partners may sell, and it allows customers’ money to be invested in SMAs (separately managed accounts). EIDEA clients profit from having a unique and independent bank account and demat account as well as our skilled channel marketing team’s services. The brokerage account is also at a pool level, susceptible to the aggregation of purchases or sells for economies of scale. The trades will be conducted as a group, and they will be distributed to individual accounts following completion.

There are about 20 equities in this long-only, high-conviction portfolio. The portfolio is built after examining high-quality, fundamentally sound firms with the potential to execute for reliable long-term development and buying the best of them at reasonable prices. Our careful risk management practices guarantee a well-balanced portfolio and aim to produce higher results on a risk-adjusted basis. Long-term ownership of these prospects is what we retain in order to provide alpha to our clients consistently.

• For efficient portfolio management, EIDEA successfully integrates top-down economic research with bottom-up fundamental analysis.
• Deliver great overall performance over two to three years, outperforming benchmarks and competitors.
• To protect money and value, control risk.
• Make long-term investments in companies with execution skills and competitive advantages that will enable them to develop consistently and profitably.
• Choose carefully the medium-term possibilities economic cycles, and temporary disruptions bring.
• Invest in profitable valuations
• Create a focused portfolio.
• systematically varying one’s portfolio’s size and sectors
• Each portfolio customer has a separate bank account, Demat account, and custody account in their segregated accounts.
• The brokerage account and liquid mutual fund investments account will be the same, subject to aggregated purchases or sells for economies of scale. The trades will be conducted collectively, and following execution, they will be distributed to individual accounts.
• Reinvesting dividends from the underlying stocks
• The product does not compensate investors in the interim.

FUNDAMENTAL EQUITIES PLATFORM

In order to offer investing solutions focused on equities, the fundamental Equities platform was established in 1997. By continually using our mindset and approach, it aims preservation and long-term capital growth. EIDEA is a continuation of flagship product ENAM India Core Equity Portfolio, which over the previous 17 years has achieved a 22.2% CAGR (vs. 15.6% Nifty 500). (ending March 2018).

• ENAM Asset Management, a stand-alone division founded in 1997, offers specialist investment solutions to Indian families, businesses, NRIs, and international organizations.
• Indicator of Value
• Managed discretionary accounts: May be altered to satisfy tax and investment needs
• Mandates for institutional investors to consult
• Prioritize the needs of the client, open, and value-adding
• Team with experience, stability, and skill

Reliable Platform, Engagement & Capabilities

ENAM has installed cutting-edge infrastructure, which enables us to:

• Boutique-level specialization and the solidity of a bigger company
• Expertise in research, exclusive tools, and many industry contacts
• Processes for risk management and discipline that have been tried and tested through time and across cycles
• An ongoing dialogue on your portfolio and current affairs

ENAM pioneered many practices that have now become industry standards. For example:

Accounts separately handled, and different service providers handle the administration and audit

Investment Objective

Generate capital appreciation through investments in equities with a long-term perspective.

Investment Approach

Construct a high quality, high conviction, long-only portfolio and Allocation across industries and capitalization ranges including companies which are typically under-researched and offer a higher return potential

Portfolio Advantage

Leading investment manager Enam AMC specializes in India-listed stocks for both local and foreign investors. Advisory services and discretionary managed accounts are among our products. We view ourselves as trustees of our customers’ assets and we customize our portfolio according to the client’s exclusive needs  and preferences in order to optimize their returns.

This company manages the portfolios of hundreds of clients with assets totalling billions of dollars in the city. The HNIs, corporate customers, and international institutional investors are the major target markets for the Enam Asset Management PMS.

The group at this company, that is in charge of investment planning, strategy, and execution is skilled and competent in this area. Before investing any of the clients’ money, they do extensive study and analysis thanks to their years of expertise.

STRONG PARENTAGE

• Established by Independent Professionals who have shown significant collaboration
• The organization has a solid corporate governance system that is integrated with its unique beliefs and values, which direct its long-term commercial objectives.
• Controlled by professionals – No employment or dealings with linked parties
• The business has had lucrative growth for two decades, but instead of paying dividends to its stockholders, it has reinvested all earnings in further development and growth.
• One of the well-capitalized asset management businesses in India with a clear business strategy

STRONG CULTURE OF COMPLIANCE

• Founded on values and guided by principles is the company’s motto.
• A deeply ingrained belief in good corporate governance, disclosure requirements, and openness
• Global footprint that is diverse and regulated in six different countries
• Exemplary track record of never violating any compliance obligations in any country
• Since the company’s founding, there have been zero consumer complaints to any regulatory authority.
• A pioneer in creating standards for the industry